Another critical early decision is the choice of your bank.  Take your time with this one because there will be many consequences down the road.

Many business owners do not fully consider their needs when selecting a bank.  Banks, savings and loans, credit unions and investment firms are not the same.

Each institution establishes its own policies for:

-- the types of products and services that are offered,

-- criteria for qualifying for a loan,

-- minimum balances for accounts,

-- interest rates and

-- charges for account services.

While one bank may specialize in commercial loans, another may focus on home or auto loans. Some banks may only offer basic deposit accounts while others have lock box services, sweep accounts, and even online banking. That is why it is important to evaluate your business needs before the selection of your bank.  For example, the right banker can help you with:

-- Assistance with the cash management needs of your business.

-- Investment products such as overnight to long-term certificates of deposit.

-- Other investment products.

-- Advice on how to qualify for a loan.

-- Special programs for small businesses, such as SBA loans.

Selecting an institution that you can work with will be especially important as your business grows.  Begin the selection process now by getting as much information as you can.

-- Ask your accountant or lawyer to introduce you to bankers who they are familiar with.

-- Check with your local chamber of commerce to find out which banks are active in the community. Attend their meetings or other service organizations to meet bankers who are involved and have interests similar to your own.

-- Look for a complementary personality - someone you can relate to and are comfortable with.

-- Introduce yourself to the banking center manager. If you are looking for a loan, ask to meet the loan officer who will be assigned to you.

-- Do not make a decision on pricing alone.  But look carefully at the charges for services.

Establish a relationship with a banker well before you need money.